Earlier this year, things looked like fortunes turning in favor of XRP after several entities showed solidarity behind them. Last year saw many crypto exchanges delist the digital asset after their scuffle with the United States Securities and Exchange Commission.
While the SEC believes that the digital asset can be classified as Securities, the company in charge of the coin, Ripple claims that the digital asset should be classified as a cryptocurrency just like Ethereum and the likes. Moneygram has now announced that it will no longer support the digital asset’s usage on its platform again.
Moneygram said the scuffle between Ripple and SEC caused the suspension
Citing the unending lawsuit between both entities, Moneygram released the statement in the early hours of today. It pointed to the SEC’s claims where it said the coin offering that Ripple did in respect to XRP in 2013 was illegal, citing the coin being unregistered.
Pointing to a whole list of companies that have taken the initiative, Coinbase came out to announce suspension and subsequent delisting of the asset some months ago. At the same time, other crypto exchanges, including Binance, followed suit.
Grayscale also resolved to dissolve its fund, which housed the third-placed digital asset at the period. However, the digital asset subsequently lost its place as the third-placed token, giving room for Tether to enter the fold.
Also, Ripple saw its surge around the period cut short by the lawsuit as the sell-off triggered the bears who dominated the market for an extended period before the bulls re-entered. The announcement to delist the digital asset was made to announce its earnings for the fourth quarter.
Moneygram does not expect payment from Ripple following the lawsuit
“As regards the ongoing lawsuit between the United States Securities and Exchange Commission and Ripple, we have concluded to suspend the use of XRP on our platform,” MoneyGram said. The company also mentioned that they have no plans of payments from the remittance coin company with the suspension.
The company meant that it does not expect Ripple to be able to pay them according to their deal which involves the digital asset company paying them. When reached for their comment on this issue, the reps of the firm have not said anything.
According to a previous arrangement between the two firms, Ripple is supposed to pay the entity for using their ODL to settle payments. The partnership was signed in 2019, and both parties have followed the deal judiciously till the Ripple and SEC issue came up.
Ripple was created with the backbone of allowing financial entities to carry out faster and easier services through the use of their asset. They have, over the years, enjoyed several partnerships with several entities, including the bank of America.
Moneygram also started using the digital asset to facilitate its payments, and the remittance coin company made a huge investment of $50 million into the confines of the payment network. Before this announcement, MoneyGram initially said it would wait and see how things develop before making their move known.